Home / Business and Economy / Revenue Surges 28%, But Cash Flow Falters
Revenue Surges 28%, But Cash Flow Falters
11 Aug
Summary
- Revenue climbed 28% to $123 million, with strong organic growth.
- Free cash flow turned negative $13.1 million in Q2.
- A Connecticut bank charter has been filed to expand financial services.
The company announced robust financial results, with revenue surging 28% to approximately $123 million in the recent quarter. This impressive growth was fueled by a 21% organic increase in Q2 and 24% in the first half, aligning with prior guidance. Recurring revenue also saw a healthy 24% rise, now constituting 72% of total revenue, with notable margin expansions in processing and SaaS.
Despite the strong revenue performance, the company experienced a negative free cash flow of $13.1 million in Q2. This was attributed to accelerated investments, leading to a downward revision of the full-year free cash flow conversion guidance. Furthermore, a net loss of $10.1 million was reported for the quarter, partly due to a significant increase in non-cash stock-based compensation.
In a strategic move to enhance its financial service offerings, the company has filed for a Connecticut bank charter. This initiative aims to leverage its in-house lending and issuing capabilities to capture more value from its existing merchant base. The EV charging business is also showing accelerated growth, with key deployments and network expansions contributing to the overall positive trajectory.
